By Jonathan Davies

Older workers staying in their jobs into their 50s create more jobs for young people, rather than fewer, according to a government-backed report.

The report, by Dr Ros Altmann the government-appointed champion for older workers, also argues that older workers can boost wages for younger people.

Dr Altmann also suggested extending the working life, insisting it could add up to £55bn to the UK economy. If everyone worked a year longer, she claims, it would add 1% to GDP.

"Academic and historical evidence shows that, far from damaging job prospects, keeping more older people in work is associated with rising employment and wages for younger people," said Dr Altmann.

The champion for older workers believes that, in theory, the more older people in work, the more money they have to spend, which in turns benefits the economy and creates more jobs.

The report also suggests that if the number of over 50s leaving employment continues on its current trend, the UK could suffer from a labour and skills shortage. By 2022, there will be 700,000 fewer 16-49 year olds working in the UK, Dr Altmann suggests.

In the report, Dr Altmann calls on the government to appoint a national champion for older workers, introduce a national strategy to improve adult skills, tackle discrimination by imposing new penalties and improve Job Centre programmes for over 50s.